The Determinants of Reserves Disclosure in the Extractive Industries: Evidence from Australian Firms

30 Pages Posted: 6 Oct 2012

See all articles by Grantley Taylor

Grantley Taylor

Curtin University - School of Accounting

Grant Richardson

Department of Accounting and Corporate Governance

Greg Tower

Curtin University of Technology

Phil Hancock

University of Western Australia

Date Written: October 2012

Abstract

This paper examines the determinants of reserves disclosure (RD) in the Australian extractive industries. Our regression results indicate that RD are positively associated with variables relating to corporate governance, foreign listing, existence of reserves in foreign jurisdictions, pledging of reserves in debt covenants, leverage and external (Big 4) auditor, after controlling for firm size, subindustry, shareholder concentration and development/production stage. Additional regression testing shows that the existence of reserves in foreign jurisdictions is the most important determinant of RD in Australia. This paper contributes to a better understanding of the extent and rationale behind the RD practices of Australian resource firms.

Keywords: Mineral and petroleum reserves, Disclosure, Accounting estimates, Accounting setting

JEL Classification: M41

Suggested Citation

Taylor, Grantley and Richardson, Grant and Tower, Greg and Hancock, Phil, The Determinants of Reserves Disclosure in the Extractive Industries: Evidence from Australian Firms (October 2012). Accounting & Finance, Vol. 52, pp. 373-402, 2012, Available at SSRN: https://ssrn.com/abstract=2157861 or http://dx.doi.org/10.1111/j.1467-629X.2011.00433.x

Grantley Taylor (Contact Author)

Curtin University - School of Accounting ( email )

Australia

Grant Richardson

Department of Accounting and Corporate Governance ( email )

4 Eastern Road
North Ryde
New South Wales, NSW 2109
Australia

Greg Tower

Curtin University of Technology ( email )

Australia

Phil Hancock

University of Western Australia ( email )

Graduate School of Management
35 Stirling Highway
Crawley WA 6009
Australia
61 8 938029129 (Phone)
61 8 9380 1072 (Fax)

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